Indian investors seeking overseas market exposure are facing a narrow route after international mutual fund schemes stopped accepting fresh money because of overseas investment limits. In that backdrop, a smaller set of domestic mutual funds has emerged as an alternative for those who still want some participation in foreign equities.
According to the report, 15 domestic schemes across equity and hybrid categories currently hold foreign stocks in their portfolios. That means investors who cannot access dedicated international funds may still find limited global diversification through India-focused products that include an overseas component.
The report also highlights that two of these schemes have foreign equity allocations of more than 26%, making them stand out from the rest of the list. For investors, that level of exposure may be meaningful, especially at a time when direct access through international fund offerings remains constrained.
The broader takeaway is that domestic funds are now playing a larger role for Indian investors who want international exposure without leaving the mutual fund route. Even so, the available exposure depends on each scheme’s mandate and portfolio mix, so the foreign allocation within these funds can vary significantly.
